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Australian (ASX) Banks Industry Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies15
  • 7D0.2%
  • 3M8.7%
  • 1Y29.6%
  • YTD6.7%

Last week, the Banks industry hasn't moved much but Commonwealth Bank of Australia is up 3.6% in that time. The past year has been better, since the industry has gained 30% in that time. As for the next few years, earnings are expected to grow by 4.5% per annum.

Industry Valuation and Performance

Has the Australian Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 17 Mar 2026AU$703.4bAU$98.1bAU$30.9b15.7x22.8x7.2x
Thu, 12 Feb 2026AU$690.6bAU$97.5bAU$30.5b19.5x22.6x7.1x
Sat, 10 Jan 2026AU$635.3bAU$96.7bAU$30.3b18.6x21x6.6x
Mon, 08 Dec 2025AU$636.3bAU$96.7bAU$30.3b18.6x21x6.6x
Wed, 05 Nov 2025AU$691.0bAU$96.0bAU$31.4b17.7x22x7.2x
Fri, 03 Oct 2025AU$673.5bAU$95.6bAU$31.7b15.4x21.2x7x
Sun, 31 Aug 2025AU$667.0bAU$95.6bAU$31.7b15.3x21x7x
Tue, 29 Jul 2025AU$630.3bAU$94.5bAU$31.8b14.4x19.8x6.7x
Thu, 26 Jun 2025AU$665.7bAU$94.6bAU$31.8b15.1x20.9x7x
Sat, 24 May 2025AU$617.1bAU$94.6bAU$31.8b14x19.4x6.5x
Mon, 21 Apr 2025AU$580.2bAU$93.3bAU$31.7b12.7x18.3x6.2x
Wed, 19 Mar 2025AU$546.2bAU$93.2bAU$31.7b12.2x17.2x5.9x
Fri, 14 Feb 2025AU$635.3bAU$93.1bAU$31.7b14.4x20x6.8x
Sun, 12 Jan 2025AU$594.6bAU$92.5bAU$31.4b13.8x18.9x6.4x
Tue, 10 Dec 2024AU$605.7bAU$92.5bAU$31.4b13.8x19.3x6.5x
Thu, 07 Nov 2024AU$584.7bAU$92.2bAU$31.8b12.9x18.4x6.3x
Sat, 05 Oct 2024AU$541.7bAU$91.8bAU$31.5b11.9x17.2x5.9x
Mon, 02 Sep 2024AU$565.8bAU$91.8bAU$31.6b12.5x17.9x6.2x
Wed, 31 Jul 2024AU$546.7bAU$91.7bAU$31.6b11.4x17.3x6x
Fri, 28 Jun 2024AU$516.6bAU$91.7bAU$31.6b10.3x16.3x5.6x
Sun, 26 May 2024AU$495.5bAU$91.6bAU$31.8b10.6x15.6x5.4x
Tue, 23 Apr 2024AU$477.2bAU$92.4bAU$32.9b11x14.5x5.2x
Thu, 21 Mar 2024AU$490.3bAU$92.5bAU$32.7b10.7x15x5.3x
Sat, 17 Feb 2024AU$483.1bAU$92.5bAU$32.8b10.5x14.7x5.2x
Mon, 15 Jan 2024AU$459.2bAU$92.8bAU$33.2b8.2x13.8x4.9x
Wed, 13 Dec 2023AU$436.3bAU$92.8bAU$33.2b8x13.1x4.7x
Fri, 10 Nov 2023AU$426.0bAU$92.5bAU$33.3b8x12.8x4.6x
Sun, 08 Oct 2023AU$422.1bAU$91.0bAU$32.6b8x12.9x4.6x
Tue, 05 Sep 2023AU$427.0bAU$91.0bAU$32.6b8.3x13.1x4.7x
Thu, 03 Aug 2023AU$428.4bAU$91.0bAU$32.4b8.4x13.2x4.7x
Sat, 01 Jul 2023AU$409.6bAU$91.0bAU$32.4b8.3x12.6x4.5x
Mon, 29 May 2023AU$404.0bAU$91.0bAU$32.4b8.2x12.5x4.4x
Wed, 26 Apr 2023AU$422.8bAU$89.2bAU$31.3b8.2x13.5x4.7x
Fri, 24 Mar 2023AU$406.8bAU$89.2bAU$31.5b9.5x12.9x4.6x
Price to Earnings Ratio

12.9x


Total Market Cap: AU$406.8bTotal Earnings: AU$31.5bTotal Revenue: AU$89.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Australian Banks Industry Price to Earnings3Y Average 17.1x202420252026
Current Industry PE
  • Investors are optimistic on the Australian Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 22.8x which is higher than its 3-year average PE of 17.1x.
  • The 3-year average PS ratio of 5.8x is lower than the industry's current PS ratio of 7.2x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 3.2% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

Which industries have driven the changes within the Australian Financials industry?

AU Market-2.69%
Financials-0.54%
Banks0.17%
Diversified Banks0.22%
Regional Banks-3.42%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 34.3x.
    • Analysts are expecting annual earnings growth of 23.5%, which is higher than its past year's earnings decline of 30.4% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 17.1x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is better than its past earnings decline of 30% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 4.2% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CBA Commonwealth Bank of AustraliaAU$175.533.6%
+AU$10.2b		21.3%PB3.8x
NAB National Australia BankAU$47.062.1%
+AU$3.0b		41.6%PB2.3x
WBC Westpac BankingAU$40.922.0%
+AU$2.8b		36.9%PB1.9x
ANZ ANZ Group HoldingsAU$37.451.8%
+AU$2.0b		30.5%PB1.6x
BOQ Bank of QueenslandAU$6.851.3%
+AU$59.2m		6.0%PB0.8x

Latest News

ANZ
AU$37.45
ANZ Group Holdings
7D
1.8%
1Y
30.5%
WBC
AU$40.92
Westpac Banking
7D
2.0%
1Y
36.9%

WBC: Steady Assumptions And Elevated P/E Will Limit Future Upside

Analysts have modestly increased their 12 month price target for Westpac Banking to around A$35.33, reflecting small adjustments to fair value, discount rate and assumed future P/E, rather than any major change in the underlying thesis. Valuation Changes Fair Value: A$35.31 adjusted marginally to A$35.33, reflecting a very small change in the underlying valuation inputs.
MYS
AU$4.31
MyState
7D
1.2%
1Y
18.1%

MYS: Stable Dividend And Earnings Assumptions Will Support Future Upside Potential

MyState’s analyst price target has been held steady at A$5.26, with analysts pointing to largely unchanged fair value estimates, discount rate, revenue growth and profit margin assumptions, as well as a marginally adjusted future P/E of 14.11x, as the basis for maintaining their view. What's in the News MyState Limited announced an ordinary dividend of A$0.12 per security for the six months ended December 31, 2025, with a record date of February 26, 2026, an ex date of February 25, 2026, and a payment date of March 20, 2026 (Key Developments).
BEN
AU$10.04
Bendigo and Adelaide Bank
7D
-0.5%
1Y
-2.0%

BEN: Future Returns Will Reflect Fair Entry Opportunity And Execution Delivery Risks

The analyst price target for Bendigo and Adelaide Bank edges up to around A$10.72, a move analysts link to a modestly higher assessed fair value and slightly lower discount rate, along with recent Street research that views the share price pullback as creating a more attractive entry level. Analyst Commentary Bullish Takeaways Bullish analysts see the recent share price selloff as creating a more attractive entry level relative to their assessed fair value around A$11.32.
CBA
AU$175.53
Commonwealth Bank of Australia
7D
3.6%
1Y
21.3%

CBA: Elevated P/E And Margin Pressures May Cap Future Dividend Appeal

Analysts have increased their fair value estimate for Commonwealth Bank of Australia slightly to A$127.44 from A$127.23, reflecting updated assumptions for revenue, profit margins and future P/E that they consider better aligned with current conditions. Analyst Commentary Analysts describe the updated A$127.44 fair value estimate for Commonwealth Bank of Australia as a fine tuning rather than a major reset.
NAB
AU$47.06
National Australia Bank
7D
2.1%
1Y
41.6%

NAB: Higher Future P/E Expectations Will Likely Outpace Modest Margin Support

Narrative Update on National Australia Bank Analysts have raised their price target for National Australia Bank from A$30.00 to A$34.00, supported by updated modelling that uses a slightly lower discount rate, modestly higher revenue growth and profit margin assumptions, and a higher future P/E multiple. What’s in the News Long standing Group Executive Shaun Dooley plans to retire by the end of 2026 after a 33 year career at National Australia Bank, having served as Group Chief Risk Officer since 2018 and acting Group Chief Financial Officer since March 2025 (company event filing).
JDO
AU$1.47
Judo Capital Holdings
7D
-5.2%
1Y
-20.1%

JDO: Higher Profit Margins And Lower P/E Will Support Upside Potential

Analysts now see a modestly higher fair value for Judo Capital Holdings, lifting their price target from A$2.09 to A$2.20 as they factor in slightly stronger projected profit margins and a lower forward P/E multiple, even as revenue growth expectations are trimmed. Valuation Changes Fair Value: raised slightly from A$2.09 to A$2.20.
BFL
AU$8.10
BSP Financial Group
7D
-2.3%
1Y
12.0%
KSL
AU$1.20
Kina Securities
7D
2.1%
1Y
9.1%
BOQ
AU$6.85
Bank of Queensland
7D
1.3%
1Y
6.0%
BBC
AU$0.28
BNK Banking
7D
7.7%
1Y
1.8%